Teacher and Mumpreneur Closes Angel Investment Deal of Over £50,000 to Expand her Nursery Business Through Venture Giant
LONDON, November 20, 2013 /PRNewswire/ --
Research has shown that a lack of business funding and mentorship has been seen as the two biggest barriers to starting a business in the UK. It can also be a difficult time for an established small business searching for working capital to expand or continue to operate their businesses.
Even businesses that opt to try innovative methods of raising funding via crowd funding platforms have inevitably led to high success-based commission fees and also have failed to provide the level of expertise and mentorship that a small growing business requires during the first five years of trading.
This was exactly the situation that Mumpreneur, Sarah Tindle faced when looking at all of the funding options for her Nursery in Derbyshire. She was sure that her business could be expanded through opening multiple sites across the UK by creating franchise opportunities but funding was holding her back from taking her business to the next level.
Sarah, as many UK entrepreneurs and small businesses do, had the skillset to operate her business, had many years of experience in creative arts and had even moved from her Community village hall into her own leased building but was having trouble locating funding of £50,000 to meet the demands of her growing business.
After carrying out extensive research on all of the business organisations that could help her, she chose to approach Venture Giant in the hopes of finding business angel investment from a high net worth individual that would understand her business, background, and growth prospects of her business.
Business Angel Investment involves raising investment from a single experienced business person, or a small group of individuals when the investment required is over £500,000.
She not only found the small business investment she was seeking on Venture Giant but also the experience and mentorship that she required to really give her business a boost. There even came a time when Sarah was declining investment from some of the investors that Venture Giant introduced to her.
Statistically, the UK boasts around a third of Europe's angel investment, with small businesses successfully raising £1bn each year through Angel Investment. This is not an area that has been overlooked, however, the traditional problem that small businesses and start-ups have faced when looking to secure angel investment is how to locate these wealthy individuals and also how to secure a deal with them.
Investor networks providing the service of introducing private high net worth individuals to entrepreneurs have failed in that there are no real guarantees of success, large upfront fees and the large percentages demanded on successful deals completed have made these propositions cost-prohibitive to the large proportion of start-ups that are already strapped for cash.
Enter Venture Giant into the fold. Established in 2008, Venture Giant refused to charge cash-strapped businesses upfront fees and also refused to charge a commission on investment raised.
Venture Giant instead chose to take the middle ground by guaranteeing investor interest froma suitable vetted angel investor or no fees would be payable.
"For all the work that we carried out, we only charged £99 for finding Sarah Business angel investment of £50,000 and getting her in touch with some really valuable investor contacts on Venture Giant." Rishi Anand stated.
In an industry offering no real guarantees of success this was a breath of fresh air, and this charging model soon became Venture Giant's 'secret-sauce' in making the service extremely accessible to start-ups and established businesses.
Entrepreneurs are clearly responding to this business model. Since 2008, Venture Giant has received over 25,000 small business registrations, featured to date over 1700 investment deals and has received over 2500 investor requests to use its service. A full list of Venture Giant's registered Angel investors on their network is available to view from this link.
Entrepreneurs have already raised over £1.8m of business investment commission free through the online matching platform for their start-up ventures.
Success stories on Venture Giant have included the former Commercial director of VisitLondon raising £250,000 of business funding for London.com and more recently an established business raising £500,000 as working capital to provide the capital to resurface London Underground Tube stations on the Piccadilly Line for a reported six figure contract amount.
Entrepreneur and small businesses that are looking for small business funding through angel investment are well advised to take a look at established networks that include the British Business Angel Association, Venture Giant and the private investors' unit of Vestra Wealth, which all exist to share knowledge and filter pitches from entrepreneurs.
Investors and high net worth individuals that may be interested in investing in deals like Sarah's Nursery project are well advised to click here Business investmentopportunities.
http://www.venturegiant.com ‐ 'Bringing Entrepreneurs & Investors, together'
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